Embarking on the journey to purchase your first home is an incredibly exciting and rewarding experience!
To make the mortgage process smoother, one effective step is to get pre-approved for your mortgage. Pre-approval doesn’t lock you into a specific lender, but it does secure your interest rate for 90 to 120 days, protecting you if rates increase while you’re still house hunting.
Here are some key benefits of mortgage rate holds:
Protection Against Rate Increases: A rate hold guarantees your interest rate for a set period, usually up to 120 days, shielding you from potential rate hikes. Plus, if rates drop during this time, you can still benefit from the lower rate!
Better Financial Planning: Knowing your exact interest rate allows for more precise financial planning and budgeting. It provides clarity on your monthly mortgage payments, helping you target the right price range for your home and ensuring long-term financial stability.
Time for Decision Making: A rate hold offers peace of mind, giving you the necessary time to find the perfect home. It also allows you to compare different mortgage options without the pressure of changing rates, which is especially helpful when evaluating various lenders or mortgage products.
Stress Reduction: Rate holds reduce the stress associated with fluctuating rates and market uncertainties. After the recent market volatility, having a secured rate can ease the pressure of home shopping. You can take your time finding the right home, and if your rate hold expires, renewing it is simple!
Securing a Competitive Rate: While significant rate increases are not expected in the near future, securing a rate hold can still save you money by locking in a favorable rate should market conditions change.
Overall, rate holds provide peace of mind, financial security, and the ability to make informed decisions when entering a mortgage agreement. They are particularly valuable in fluctuating rate environments or when delays in finalizing your mortgage are anticipated. Interested in purchasing a home or learning more about rate holds and the mortgage process? Reach out to Mortgage Man DLC today 705.326.8523, we are here to assist you through the mortgage process.
Source: DLC Marketing Team